Southwest Airlines Offers Buyouts Amid Aircraft Shortage

Southwest Airlines is offering voluntary buyouts and extended leaves of absence to airport workers across 18 locations due to a shortage of new aircraft from Boeing, which has been struggling with production delays. The airline plans to reduce its workforce by 2,000 by the end of the year, following a significant increase in staff from 66,600 to nearly 75,000 last year. These offers primarily target ground operations staff, including customer service agents and baggage handlers, while pilots and flight attendants are excluded. The delivery of new Boeing 737 jets has been drastically cut from an expected 85 to just 20 this year, exacerbating Southwest's operational challenges. The moves come as pressure mounts from investors, including Elliott Investment Management, to improve the airline's financial performance. Southwest has stated that these measures are necessary to avoid overstaffing as it navigates a constrained fleet and seeks to align capacity with demand.